SCHOOL OF BUSINESS ADMINISTRATION AND ACCOUNTANCY

General Luna Road, Baguio City

UB VISION
In pursuit of perfection, the University of Baguio is committed to provide balanced quality education by nurturing academic excellence, relevant social
skills and ethical values in a fun-learning environment.

UB MISSION
The University of Baguio educates individuals to be empowered professionals in a global community.

INSTITUTIONAL OBJECTIVES (REVISED 2011)

The University of Baguio aims to produce a graduate who:
1. exemplifies a higher standard of learning;
2. manifests the mastery of relevant skills;
3. upholds a conduct that is rightful and just;
4. undertakes scientific and significant researches;
5. advocates sustainable programs for the community and the environment; and
6. leads and demonstrates exemplary performance in the field of specialization.

CORE VALUES

COMPETENCE + INTEGRITY = SERVICE

COMPETENCE University of Baguio is committed to nurturing excellent professionals.

INTEGRITY University of Baguio is committed to cultivating a community with ethical values.

SERVICE University of Baguio is dedicated to building a community that advocates sustainable programs for the society and the environment.

Course Number: FINMGT6 Course Description: Investment and Portfolio Effectivity: 1st Semester 2015- 2016 Date Revised: December, 2015 Page 1 of 11
Management
3 UNITS
SCHOOL OF BUSINESS ADMINISTRATION AND ACCOUNTANCY MISSION

The University of Baguio educates individuals to be empowered professionals in a global community. The School of Business Administration and Accountancy edifies competitive and
morally upright individuals.

SCHOOL OBJECTIVES
The School of Business Administration and Accountancy aims to produce a graduate who:
1. cultivates the knowledge that is imperative for success in globalized setting;
2. displays expertise appropriate to the profession;
3. typifies professional integrity with humility;
4. undertakes researches to promote systematic bases for business decisions;
5. utilizes macro-environmental acumen for economic growth and development; and
6. exhibits commendable accomplishments in business and accountancy.

PROGRAM OBJECTIVES:

The Bachelor of Science in Business Administration and program aims to produce a graduate who:
1. fosters the highest level of competence in the chosen career;
2. performs the requisite skills in the various business disciplines;
3. makes morally upright choices I dealing with ethical dilemmas;
4. undertakes significant researches employed in crafting of relevant business decisions;
5. takes personal initiative and responsibility through participation in community –related activities and;
6. contributes to successful business ventures by creditable work performance.

CORE VALUES

1. Professional Ethics
2. Integrity
3. Objectivity and Independence
4. Professional Competence and Due Care

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 5. Confidentiality
6. Professional Behavior
7. Fairness
8. Transparency
9. Accountability
10. Hard Work
11. Honesty
12. Patience
13. Diligence
14. Innovativeness
15. Risk-taking

1. Program Learning Outcomes (PLO) vis a vis Program Objectives

PROGRAM OBJECTIVES
Program Outcomes (effective SY 2015-2016) P1 P2 P3 P4 P5 P6
A. The Graduates have the ability to articulate and discuss the latest developments in the specific field of practice. √
B. The Graduates have the ability to effectively communicate orally and in writing using both English and Filipino. √
C. The Graduates have the ability to work effectively and independently in multi-disciplinary and multi-cultural teams. √
D. The Graduates have the ability to act in recognition of professional, social, and ethical, responsibility. √
E. The Graduates have the ability to preserve and promote “Filipino historical and cultural heritage” (based on RA 7722). √
F. The Graduates have the ability to carry out researches that can be utilized in the community and in the business profession. √

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2. Course Objectives vis-a-vis Program Learning Outcomes
PROGRAM LEARNING
Course Objectives OUTCOMES
O1 O2 O3 O4 O5 O6
COGNITIVE DOMAIN
C1 Identify the different types of securities used by financial institutions. √ √ √ √
C2 Quantify financial risks and return. √ √ √
C3 Evaluate correctly the risks and return of financial instruments. √ √ √
C4 Compare how investors evaluate risk management policies of firms in perfect financial markets. √ √ √
C5 Identify which types of security a corporation should invest in. √ √ √
C6 Enumerate the determinants of the price of financial instruments √ √ √
C7 Implement risk-minimizing investment strategies. √ √ √
C8 Understand how market imperfections affect investment policies. √ √ √
C9 Understand the cost and benefits associated with using financial products. √ √ √
C10 Identify current trends and challenges in financial securities. √ √ √ √
AFFECTIVE DOMAIN
C11 Exhibit interest in all of the topics to be discussed in class √ √ √ √
C12 Demonstrate an understanding of the nature and importance of financial instruments in financial management. √ √ √
C13 Conduct an objective and learned evaluation of the course, its contents and requirement to enhance the administration of this course. √ √ √
C14 Practice decision-making skills learned, combined with intuition and judgment. √ √ √ √
C15 Form relevant options regarding financial securities management. √ √ √ √
C16 Interrelate the topics learned to topics in financial management subjects, as well as to topics in other subjects taken. √ √ √ √
PSYCHOMOTOR DOMAIN
C17 Investigate when it is optimal to produce invest on his own. √ √ √ √ √
C18 Actively participate in classroom discussions. √ √ √ √ √
C19 Complete and present case studies. √ √ √ √ √
C20 Make valid recommendations in problem-solving cases. √ √ √ √ √
C21 Propose activities that will enhance the theories and methods in financial management. √ √ √ √ √
C22 Report on an assigned topic after an advanced study and guided research. √ √ √ √ √
C23 Draw diagrams relating to the topics covered in the course. √ √ √
C24. Apply the skills and knowledge acquired in meeting the requirement of the course such as quizzes, group work, case studies, and other √ √ √ √ √
problem solving activities.

CURRICULUM MAPPING OF THE SUBJECT:

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 Program Outcomes (effective SY 2015-2016)
A. The Graduates have the ability to articulate and discuss the latest developments in the specific field of practice. P – Outcome Practiced in the course
B. The Graduates have the ability to effectively communicate orally and in writing using both English and Filipino. P – Outcome Practiced in the course
C. The Graduates have the ability to work effectively and independently in multi-disciplinary and multi-cultural teams. P – Outcome Practiced in the course
D. The Graduates have the ability to act in recognition of professional, social, and ethical, responsibility. P – Outcome Practiced in the course
E. The Graduates have the ability to preserve and promote “Filipino historical and cultural heritage” (based on RA 7722). O – Outcome Not yet learned/practiced but the opportunity to
exist
F. The Graduates have the ability to carry out researches that can be utilized in the community and in the business P – Outcome Practiced in the course
profession.

Course Description

A study of fundamental theories of optimal portfolio selection, investment evaluation, securities valuation, industry and company analysis in relation to stock market operations, management of
fixed income investments, and international portfolio diversification. The course likewise attempts to develop the analytical ability of the students through various financial case presentations.

Pre-requisite/s: FINMGT3 Credit and Collection; FINMAN1 Financial Management

Co-requisite/s: FINMGT7 Capital Markets Management; FINMAN3 Financial Reporting and Analysis

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 I. DETAILED COURSE OUTLINE:

Outcomes
Based
Time
Session Learning Content Topic Methodologies Learning Outcomes
Allotment Values Evaluative Measures
Objectives/Goals (SLO/G) /Strategies &
Approaches
First Grading Coverage
16 hrs
Orientation
Internalize the
Course Syllabus
VMO
VMO
Arrange
Seat Plan 1 hour
students
Leveling of Expectations
Requirements
& Grading
system
The student should be Professional
able to describe what an ethics
investment is and be Integrity
knowledgeable about the Objectivity and
different measures of risk Independence
I . The Investment Setting and return, their Professional
 What is an Investment determinants and competence
Lecture
To be able to understand relationship. and due care Quiz
 Measures of Return and Risk Class
the concepts of Professional Recitation
 Determinants of Required Rates of Discussion 5 hrs
investment and the behavior Assignment
Return Reading
different investment tools. Fairness Group Output
 Relationship Between Risk and Return Assignment
Transparency
Accountability
Hard work
Honesty
Patience
Diligence
Risk-taking
To be able to determine II. Asset Allocation Decision Lecture The student should be 4 hrs Professional Quiz
the basic requisites of the  Portfolio Management Process Class able to describe the ethics Recitation
portfolio management  Policy Statement Discussion portfolio management Integrity Assignment

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 process, the different Objectivity and
investment objectives Independence
and explain why they Professional
should be expressed in competence
terms of risk and return, and due care
 Investment Objectives: Risk and Return describe investment Confidentiality
process and policy  Capital Preservation, Appreciation, constraints, to list the Professional
statements and to know Current Income, Total Return Reading factors that affect an behavior
Group Output
their different  Investment Constraints Assignment investor’s tolerance for Fairness
considerations.  Importance of Asset Allocation risk, the importance of Transparency
asset allocation and Accountability
explain the factors that Hard work
cause asset allocation Honesty
differences in different Patience
countries. Diligence
Innovativeness
The student should be Professional
able to define risk ethics
aversion and discuss Integrity
evidence that suggest a Objectivity and
person is risk averse, Independence
know the assumptions Professional
III. Intro to Portfolio Management about investor behavior competence
 Risk Aversion under Markowitz model, and due care
 Investor Behaviour: Markowitz Class compute and interpret Confidentiality
To be able to understand  Return on Investment Discussion expected return, Professional Quiz
Markowitz portfolio theory Lecture variance and standard behavior Recitation
 Variance and Standard Deviation 6 hrs
and determine the optimal Reading deviation for an Fairness Assignment
 Covariance and Correlation Coefficient
portfolio choice. Assignment individual investment Transparency Group Output
 Portfolio Creation and for a portfolio and Accountability
 Efficient Frontier compute and interpret Hard work
 Optimal Portfolio covariance of rates of Honesty
return and how it relates Patience
to correlation coefficient. Diligence
The student is also Innovativeness
expected to explain the Risk-taking
concept of optimal
portfolio.
FIRST GRADING EXAMINATION 2 hrs
Midterm Coverage 16 hrs

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 The student should be Professional
able to explain capital ethics
market theory including Integrity
its underlying Objectivity and
assumptions and its Independence
IV. Intro to Asset Pricing Models effect on expected Professional
 Capital Market Theory return, standard competence
 Risk-free Assets Class deviation of returns and and due care
To be able to understand  Capital Market Line Discussion possible risk-return Confidentiality Quiz
capital market theory and  Systematic and Unsystematic Lecture combinations with the 6 hrs Professional Recitation
discuss its components. Risk Reading introduction of a risk-free behavior Assignment
 Capital Asset Pricing Model and Assignment asset, explain CAPM, Transparency
Security Market Line SML and beta and to be Accountability
 Securities Analysis able to evaluate Hard work
securities using these Honesty
models. The student Patience
should also be able to Diligence
define systematic and Innovativeness
unsystematic risk.
The student should be Professional
able to describe the ethics
business cycle, industry Integrity
VI. Industry Analysis sectors and tools used in Objectivity and
 The Business Cycle and Industry industry analysis; to Independence
Sectors Class evaluate industry life Professional
Quiz
To be able to understand Discussion cycles and analyze competence
 Why Do Industry Analysis Recitation
the importance of industry Lecture industry competition to 7 hrs and due care
 Structural Economic Changes Assignment
analysis. Reading serve as a guide in Professional
and Alternative Industries Case Analysis
Assignment making investment behavior
 Evaluating the Industry Life Cycle decisions. Accountability
 Analysis of Industry Competition Hard work
Patience
Diligence
Innovativeness
To be able to understand VII. Technical Analysis Lecture The student should be 3 hrs Professional Quiz
technical analysis as a  Underlying Assumptions of Class able to identify the ethics Recitation
method in making Technical Analysis Discussion assumptions of technical Integrity Assignment
investment decisions.  Advantages of Technical Analysis Reading analysis, describe its Professional Group Output
 Challenges to Technical Analysis Assignment advantages and competence
 Technical Trading Rules and challenges to technical and due care

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 analysis; describe Professional
technical trading rules behavior
and indicators to be Accountability
utilized in coming up with Hard work
Indicators
investment decisions / Patience
recommendations. Diligence
Innovativeness
Risk-taking
MIDTERM EXAMINATION 2 hrs
Finals Coverage 16 hrs
The student should be Professional
VIII. Equity Portfolio Management able to describe active ethics
Strategies and passive Professional
 Passive vs Active Management management including competence
To be able to understand Class Quiz
the different strategies and due care
equity portfolio  An Overview of Passive Equity Portfolio Discussion Recitation
under them, their Confidentiality
management strategies as Management Strategies Lecture 7 hrs Assignment
advantages and Professional
a guide in the asset  An Overview of Active Equity Portfolio Reading Group Output
disadvantages; to behavior
allocation decision. Management Strategies Assignment Case Analysis
explain value versus Accountability
 Value vs Growth Investing growth investing. Hard work
 Asset Allocation Strategies Honesty
Diligence
To be able to understand The student should be Quiz
bond portfolio able to describe the Recitation
Lecture Professional
management strategies as different bond portfolio Assignment
IX. Bond Portfolio Management Strategies Class competence
a guide in the asset strategies and explain Group Output
 Alternative Bond Portfolio Strategies Discussion and due care
allocation decision. the implications of capital 6 hrs Case Analysis
 Implications of Capital Market Theory and Reading Hard work
market theory and
the EMH on Bond Portfolio Management Assignment Honesty
efficient market
Diligence
hypothesis on bond
portfolio management.
To be able to understand X. Professional Asset Management Class The student should be 3 hrs Professional Quiz
the structure of  The Asset Management Industry: Discussion able to describe the ethics Recitation
professional asset Structure and Evolution Lecture structure of the asset Integrity Assignment
management and the  Valuing Investment Company Shares Reading management industry, Objectivity and
different istruments.  Closed-End vs Open-End Investment Assignment the different investment Independence
Companies instruments and Professional
 Types of Investment Companies Based companies; be able to competence
on Portfolio Makeup evaluate them properly and due care
and be able to explain Professional

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 the difference between a behavior
closed-end and open- Transparency
end investment Accountability
companies. Hard work
Honesty
Diligence
Innovativeness
FINAL EXAMINATION 2 hrs
Total: 54
hrs

II. GRADING SYSTEM:

For Professional Subjects: the cut-off score is 70%. The highest possible grade is ninety-nine (99); the lowest passing grade is seventy-five (75); and the lowest failing grade is sixty-five (65).

First grading Class standing = 70 % ; Exam = 30 %

Midterms Class standing = 60 % ; Exam = 40 %
( Tentative Midterm Grade x 2 + First Grading ) / 3 = Midterm Grade
Finals Class standing = 60 % ; Exam = 40 %
( Tentative Final Grade x 2 + Midterm Grade ) / 3 = Final grade

III. REFERENCES

A. Books
Brigham, E (2011). Financial Management: Theory and Practice, 14th Edition. Florida, U.S.: The Dryden Press, Hardcourt Brace College Publishers.
Brigham, E (2010). Fundamentals of Financial Management, Concise Edition. U.S.: The Dryden Press, Hardcourt Brace College Publishers
Leong, T. et.al. (2011) Business Modeling with Spreadsheets. New York: McGraw-Hill
Bowerman, B. et al. (2012) Essentials of Business Statistics. New York: McGraw-Hill
Lim, K. (2011) Probability and Finance Theory. Singapore: World Scientific Publishing Co. Pte. Ltd.
Cornett, M. et al. (2012) Finance. New York: McGraw-Hill
Jordan, B. et al. (2012) Fundamentals of Investments. 6th Ed. New York: McGraw-Hill

B. Websites:

www.investopedia.com
www.cfainstitute.org
www.quickmba.com
www.bloomberg.com

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 www.thestreet.com
www.kiplinger.com
www.investorwords.com
www.economist.com

Prepared by:

BA GROUP

Noted by:

EARLE NESTOR P. FERNANDEZ

Assigned Librarian

Approved by:

DR. KAREEN B. LEON, CPA, CMA

Dean, SBAA

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